Cervus Equipment Corporation Completes Acquisition of Peterbilt of Ontario Inc.
Symbol: CVL (TSX)
CALGARY, Aug. 11, 2014 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced that it has completed its previously announced acquisition of the business and assets of Peterbilt of Ontario Inc. ("POI").
"Cervus' successful integration and operation of the transportation business over the last two years has demonstrated our expertise as a dealer of business-to-business equipment in various industries," said Graham Drake, President and CEO of Cervus. "Cervus will continue to work in partnership with Peterbilt to realize growth opportunities in Ontario's strong freight market."
Cervus acquired the business and assets of POI for $25.5 million, plus closing net working capital adjustments expected to approximate $8.9 million, to be finalized based on POI's net tangible assets on the effective date of the acquisition. The consideration paid on closing was $25.5 million from available cash and $8.9 million drawn from the Company's current credit facilities. Over the last three fiscal periods, POI reported on average gross revenue of approximately $157 million per year.
POI was established more than 33 years ago and each of its 12 dealership locations sells and services the full line of Peterbilt Trucks, including road conventional; vocational; and medium-duty pick-up and delivery trucks.
About Cervus Equipment Corporation
Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships with interests in 67 dealership locations in Western Canada, New Zealand, and Australia. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick and Doosan material handling equipment; and Peterbilt transportation equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL".
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Cervus Equipment CorporationFor further information:
Graham Drake - President & CEO
Telephone: (403) 567-2095
Fax: (403) 567-0392
Randy Muth - Chief Financial Officer
Telephone: (403) 567-2097
Fax: (403) 567-0392